Subject: Requisitions 40083
& 40084 for the purchase of equipment for remote radio control of electric
system capacitors

Staff
Recommendation:

Staff
recommends approval of purchase requisitions 40083 and 40084 from QEI, Inc. and
Alligator Communications for the amounts of $28,995.00 and $41,223.00
respectively. The total project cost is $70,218.00.

Analysis:

The Electric
Department requested the purchase of radio controlled capacitor controllers
(QEI, Inc.) and radio equipment (Alligator Communications) for 15 capacitor
banks. The purchase from both vendors is being combined into a single
memorandum as the purchase of one vendors equipment depends on the purchase of
the other.

The
Electric power system uses capacitors for power factor correction, typically to
increase the power factor. A higher power factor is generally desirable to
reduce losses related to electric power transmission or distribution and
improve voltage regulation at the load or service.

The
purchase of this equipment will allow the Electric Department Supervisory
Control and Data Acquisition (SCADA) system to remotely switch the capacitor
banks when necessary. Implementation of remote switchable capacitors will
benefit our utility customers and the Electric Utility by;

·Reduce power losses
by increasing effectiveness of switchable capacitors.

· More efficient
planning and electric system operation through data gathering.

·Provide customers
and the City energy savings through a well balanced electric system.

Purchase
of the radio controllers is a sole source purchase from QEI, Inc. The Electric
Department SCADA system is from QEI, Inc. In order for the capacitor
controllers to function properly they must operate on the QUICS protocol which
is a proprietary system to QEI, Inc. A sole source letter is attached for your
review.

Purchase
of the radio equipment to be installed on the controllers is a single source
purchase from Alligator Communications. The Electric Department currently uses
Alligator radios in existing remote controllable equipment. Alligator radios
are required in order for the SCADA system to be able to ‘talk’ to the
controllers. The use of another radio system would not work.

Price
quotes from each vendor are attached.

Options:

1.
Approve the purchases from QEI, Inc. and Alligator Communications; or

2.
Such alternative action as the Commission may deem appropriate

Fiscal
Impact:

Funds
are budgeted and available in the capital equipment account and project listed.